MarketFantasy sport
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Fantasy sport

A fantasy sport is a game, often played using the internet, where participants assemble imaginary or virtual teams composed of proxies of real players of a professional sport. These teams compete based on the statistical performance of those players in actual games. This performance is converted into points that are compiled and totaled according to a roster selected by each fantasy team's manager. These point systems can be simple enough to be manually calculated by a "league commissioner" who coordinates and manages the overall league, or points can be compiled and calculated using computers tracking actual results of the professional sport. In fantasy sports, as in real sports, team owners draft, trade, and cut (drop) players.

History
Early simulations The history of fantasy games can be traced to the 19th century. The tabletop game Sebring Parlor Base Ball, introduced in 1866, allowed participants to simulate games by propelling a coin into slots on a wooden board. Later games featured outcomes determined by dice rolls or spinners. Individual player cards and dice roll simulations were also emulated in the Strat-O-Matic game, which was first released in 1961. Daniel Okrent, who would later be credited with developing modern fantasy baseball, was an avid Strat-O-Matic player, telling Sports Illustrated in 2011 that "if there hadn't been Strat-O-Matic, I still think I would have come up with rotisserie, but unquestionably it helped." While some of these fantasy games produced outcomes based on the performances of real athletes, they were not designed to be played out over the course of a season, nor did they take current statistics into account, relying instead on those from previous years. The first leagues In the 1950s, Oakland, California businessman and future limited partner in the Oakland Raiders Wilfred "Bill" Winkenbach developed a fantasy golf game in which participants would select a roster of professional golfers and compare their scores at the end of a given tournament, with the lowest combined total of strokes winning. He also created a baseball game in which players drafted hitters and pitchers, comparing their real-life statistics against each other. Gamson would go on to play the game as a professor at the University of Michigan, where another competitor was Bob Sklar. One of Sklar's students was Daniel Okrent. According to Alan Schwarz's The Numbers Game: Baseball’s Lifelong Fascination with Statistics, Sklar told Okrent about the Baseball Seminar league. The inaugural league was called the Greater Oakland Professional Pigskin Prognosticators League (GOPPPL), and the first draft took place at Winkenbach's home in Oakland in August 1963. One of the league's original members, Andy Mousalimas, owned a sports bar in Oakland called the King's X, where the first public fantasy football league was founded in 1969. Rotisserie League Baseball Modern fantasy baseball was developed and popularized in the 1980s by a group of journalists who created Rotisserie League Baseball in 1980. The league was named after the New York City restaurant La Rotisserie Française, where its founders met for lunch and first played the game. Magazine writer-editor Daniel Okrent is credited with introducing the rotisserie league concept to the group and inventing the scoring system. Players in the Rotisserie League drafted teams of active MLB players and tracked their statistics during the season to compile their scores. proved to be popular despite the difficulties of compiling statistics by hand, which was an early drawback to participation. Okrent credits the idea's rapid spread to the fact that the initial league was created by sports journalists, telling Vanity Fair in 2008 that "most of us in the league were in the media, and we got a lot of press coverage that first season. The second season, there were rotisserie leagues in every Major League press box." In the late 1980s and early 1990s, the company Phoneworks created nationwide fantasy games for a variety of sports, launching them in a variety of newspapers across the United States. Players chose their teams by calling a toll-free phone number and entering four-digit codes for each of their player selections. The games served as an early version of today's daily fantasy sports by rewarding each week's highest-scoring participants with prizes. In 1993, the magazine Fantasy Football Weekly was launched. Also that year, USA Today added a weekly fantasy baseball columnist, John Hunt. Hunt started a league among sports personalities called the League of Alternate Baseball Reality, which first included Peter Gammons, Keith Olbermann and Bill James, among others. Internet expansion The growth of the Internet during the 1990s brought a "broad demographic shift in fantasy sports participation" because it enabled fantasy sports participants to instantaneously download tabulated statistics, rather than having to search for box scores of individual games in newspapers and keep track of cumulative statistics on paper. In 1995, ESPN launched its first entirely Internet-based fantasy baseball game, with other major sports and entertainment companies following suit in the ensuing years. The site focused on music, entertainment and hockey in general in addition to fantasy competitions. the same year that the fantasy news website now known as RotoWire was launched. In July 1999, Yahoo began offering its fantasy football product for free, a decision that gave the site an advantage over its competitors. CBS, which had transitioned to a free model for its league commissioner services, switched back to a paid model before the 2002 MLB season. A trade group for the industry, the Fantasy Sports Trade Association, was formed in 1998. Now known as the Fantasy Sports & Gaming Association (FSGA), the organization estimates that in 2003, there were 15.2 million fantasy sports players in the United States and Canada. During the first decade of the 2000s, fantasy sports started to become a mainstream hobby. In 2002, the National Football League (NFL) found that while the average male surveyed on its website spent 6.6 hours a week watching the league on television, fantasy players surveyed said they watched 8.4 hours of NFL football per week. "This is the first time we've been able to demonstrate specifically that fantasy play drives TV viewing," said Chris Russo, the NFL's senior vice president at the time. As a result of the survey's findings, the league made fantasy offerings more prominent on its website and produced television ads for fantasy football featuring active players. However, leagues began to embrace fantasy sports as their value towards increasing fans' consumption of sports became more evident. In June 2007, Fantasy Sports Live, one of the first daily fantasy sites, was launched. In November 2008, NBC launched a daily fantasy site called SnapDraft, and FanDuel was founded in 2009 as a spin-off of a Scottish prediction market company. DraftKings was founded in 2012. Following venture capital investments from various firms, including from professional sports leagues such as MLB and the National Basketball Association (NBA), In April 2015, after the NFL began to allow daily fantasy providers to sign multi-year team sponsorship deals, FanDuel reached deals with sixteen teams for placements on team-oriented digital properties, radio broadcasts, and within their stadiums. DraftKings has also received investments from Jerry Jones and Robert Kraft, who own the Dallas Cowboys and New England Patriots, respectively. The legality of daily fantasy sports has been questioned, with critics arguing that it more closely resembles proposition wagering on athlete performance than a traditional fantasy sports game. However, following the 2018 United States Supreme Court decision in Murphy v. National Collegiate Athletic Association, which allowed states to legalize sports betting, questions surrounding the legality of daily fantasy sports, as well as fantasy sports in general, within the United States have largely been settled. Montana is the only US state to officially ban online fantasy sports. ==Industry overview==
Industry overview
Size of the industry In May 2015, Australian market research firm IBISWorld reported that fantasy sports comprised a $2 billion industry in the United States, experiencing 10.7% annual growth and employing 4,386 people in 292 businesses. According to the Fantasy Sports Trade Association, in 2017, the size of the fantasy sports industry reached $7.22 billion, per research by Ipsos. The study estimated that there were 59.3 million fantasy sports players in the United States and Canada as of that year. This growth encouraged hundreds of millions of dollars in investments into emerging daily fantasy sports leagues, such as FanDuel and DraftKings. ESPN Super Selector launched in 2001 for fantasy cricket and had 500,000 users during the 2003 Cricket World Cup. By 2017, there were 40 million fantasy sports players in India. In 2019, the number had grown to 90 million, and in 2020, an estimated 100 million Indians participated in fantasy sports. The market leader in fantasy sports in India, Dream11, signed a four-year sponsorship deal for the IPL in 2019. Trade associations The Fantasy Sports Trade Association was formed in 1998 to represent the growing industry in the United States and Canada. Now known as the Fantasy Sports & Gaming Association, the organization aims to support fantasy sports, sports gambling in general, and its associated businesses and participants. The Fantasy Sports Writers Association was formed in 2004 to represent the growing numbers of journalists covering fantasy sports exclusively. The Fantasy Sports Association was formed in 2006 as a rival trade group. However, the organization folded in 2010. Demographics According to the Fantasy Sports & Gaming Association (FSGA), an estimated 62.5 million people played fantasy sports in the US and Canada in 2022. According to the FSGA, the most popular fantasy sport in the US and Canada is gridiron football, which is played by approximately 79% of fantasy participants. The next most popular sports are basketball (32%), baseball (22%), ice hockey (12%), association football (11%), and college football (11%). The FSGA reported in 2019 that fantasy players were also far more likely to use Instagram or Snapchat, visit a sports bar, and get food delivered than the general population. Fantasy sports television programming Due to the popularity of fantasy sports, major sports networks such as ESPN, NFL Network, and Fox Sports have created dedicated weekly fantasy programming to analyze player performance and predict outcomes in relation to particular scoring systems. ESPN's on-demand streaming platform ESPN+ offers a fantasy program called The Fantasy Show hosted by long time staff writer Matthew Berry. The Fantasy Show utilizes puppets and comedy to present statistical information about NFL players. ESPN also aires a show on Sunday mornings during the NFL season called Fantasy Football Now. "Fantasy Football Now" airs live on Sunday mornings during the NFL season, a time when fans are making last-minute roster moves and need the latest news from around the league. Providing the latest info are analysts Matthew Berry, Field Yates and licensed physical therapist Stephania Bell, who gives injury updates. NFL Network aires NFL Fantasy Live as an hour long program containing a consistent weekly segment list that viewers can count on to help them manage their team. NFL Fantasy Live is hosted by Cole Wright and features Michael Fabiano, Adam Rank, Marcas Grant, Akbar Gbaja-Biamila, Graham Barfield and statistics analytics expert Cynthia Frelund. Fox Sports Net aires Fantasy Football Hour on a weekly basis during the NFL season hosted by Katy Winge and features industry experts Brad Evans and Nate Lundy. ==Legal issues in the United States==
Legal issues in the United States
Fantasy sports are generally considered to be a form of gambling, though they are far less strictly regulated than other forms of sports betting. Unlike traditional sports betting, fantasy sports are generally viewed as "games of skill," rather than "games of chance," thus exempting them from gambling bans and regulations in many jurisdictions. Federal law related to fantasy gaming The Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), was enacted as part of the "American Values Agenda" of 2006 and was added as an amendment to the unrelated SAFE Port Act. The UIGEA generally prohibits funds transfers to businesses engaged in unlawful internet wagering. However the UIGEA does not itself define unlawful internet wagering, and expressly refrains from altering the legality of any underlying conduct other than funds transfers. While the act does not alter the legality of any particular activity permitted or prohibited under other laws, it does contain some express exemptions to its funds transfer prohibitions. One of these exemptions from the UIGEA prohibitions is for fantasy sports that meet certain criteria. Specifically, fantasy sports that are based on teams of real multiple athletes from multiple real world teams, that have prizes established before the event starts, that use the skill of participants to determine the outcome, are exempted from the definition of a bet or wager that is the basis for requiring banks to identify and block funds transfers. According to Congressman Jim Leach, an author of the UIGEA, exemptions, particularly one for fantasy sports, were included to relieve the burden of enforcement on banks and the UIGEA does not make fantasy sports legal. Because the UIGEA exempted fantasy sports from its definition of a bet or wager, there is a misconception that fantasy sports were made legal by the UIGEA. However the UIGEA is not a criminal gambling statute, and it specifically does not alter any criminal gambling laws and thus does not make fantasy sports legal. By contrast, the UIGEA is found in Title 31 with other anti-money laundering and financial crimes statutes. Where states have not expressly authorized fantasy sports contests, usually general gambling laws prohibit lotteries or wagering if three elements are present: an entry fee (known as "consideration"), a prize (a "reward," in legal terms) and chance. Whether fantasy sports are legal under these laws hinges on the definition of "chance" that the state applies. For some states, if skill dominates the outcome of the event, then the contest is legal, and passes what is called the "dominant factor test." Other states with a stricter definition of chance, called "any chance test," have made fantasy football illegal. Several states have clarified that paid fantasy sports contests are games of skill and exempt from gambling laws, beginning with Maryland in 2012. One exception is the state of Nevada, which was exempted from PASPA. The Nevada attorney general issued an opinion that found Daily Fantasy Sports to be a form of sports wagering, similar to the current wagering offered by Nevada Sports Books. The opinions states that Daily Fantasy Sports are not illegal in Nevada; however, a sports pool license is required to conduct the activity in Nevada. the state's attorney general issued an opinion that daily fantasy sports was a skill game and thus permitted under state law. Kansas Gov. Sam Brownback signed legislation a month later authorizing fantasy gaming. The Attorneys General of West Virginia and Rhode Island have also issued opinions that clarified the legality of DFS and paid fantasy sports. As of July 2025, online fantasy sports are legal in 49 of the 50 US states. The only state with a ban on online fantasy sports that is codified in statute is Montana. The victory also accelerated the demand for real-time statistics amid the growth of the fantasy sports industry. The FSTA filed an amicus curiae in support of CBC, also arguing that if MLBAM won the lawsuit it would have a dramatic impact on the industry, which was largely ignored by the major sports leagues for years while a number of smaller entrepreneurs grew it into a multibillion-dollar industry, and a ruling could allow the MLBAM to have a monopoly over the industry. "This will be a defining moment in the fantasy sports industry," said Charlie Wiegert, executive vice president of CBC. "The other leagues are all watching this case. If MLB prevailed, it just would have been a matter of time before they followed up. Their player unions are just waiting for the opportunity." CBC won the lawsuit as US District Court Judge Mary Ann Medler ruled that statistics are part of the public domain and can be used at no cost by fantasy companies. "The names and playing records of major-league baseball players as used in CBC's fantasy games are not copyrightable," Medler wrote. "Therefore, federal copyright law does not pre-empt the players' claimed right of publicity." The Supreme Court upheld the circuit court's decision by declining to hear the case in June 2008. In 2009, CBS Interactive won a lawsuit against the NFL Players’ Association over whether CBS had a First Amendment right to use players’ names and playing records in its fantasy sports offerings without paying licensing fees. ==See also==
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